Dean Manufacturing Company Has Two Support Departments, Maintenance Department and Personnel

Multiple Choice

Dean Manufacturing Company has two support departments, Maintenance Department and Personnel Department, and two producing departments, X and Y. The Maintenance Department costs of $90,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $13,500 are allocated on the basis of number of employees. The direct costs of departments X and Y are $27,000 and $45,000, respectively.
Data on standard service hours and number of employees are as follows:
$\begin{array}{lrrrr}&\text { Maint. } & \text { Person. } & \text { Dept. } & \text { Dept } \\& \underline{\text { Dept. }} & \underline{\text { Dept. }} & \underline{\mathrm{X}} & \underline{\mathrm{Y}}\\\text { Standard service hours used } & 200 & 150 & 1,200 & 600 \\\text { Number of employees } & 25 & 50 & 75 & 75 \\\text { Direct labour hours } & 250 & 250 & 1.000 & 500\end{array}$
Predetermined overhead rates for departments X and Y,respectively,are based on direct labour hours.
-Refer to the figure.What is the overhead rate for Department X assuming the direct method is used?

A) $27.00
B) $46.88
C) $81.00
D) $93.75